VCs Fund a TAMI Growth Spurt
So far this year, the TAMI (tech, advertising, media and information) sector has accounted for 27.4 percent of the leasing activity throughout Manhattan. To no one’s surprise, Midtown South has the highest percentage of TAMI-based leasing activity, with 39.8 percent of its 4.9 million square feet going to these tech firms. Lower Manhattan has the second highest volume of TAMI leasing, with 26.2 percent of the 4.5 million square feet leased this year. And, as you might expect, Midtown has the lowest percent of space leased by TAMI tenants, with them accounting for only 22.3 percent of the 10.8 million square feet leased this year.
Since 2010, the TAMI sector has led the recovery in New York City by adding 69,800 jobs, which accounts for 46 percent of the office jobs gained during this time. TAMI will likely continue to be a growth sector for New York City, as venture capital funding continues to rise. VC firms are investing more than half their capital this year in technology in the New York Metro area. Through midyear 2014, technology VC funding is up 81.1 percent over the same period last year. Already this year, there has been $1.2 billion in technology VC funding, which is on pace to surpass 2013’s total of $1.8 billion.
In fact, New York metro VC funding in the last 12 months totaled the highest investments in technology since 2000. Unlike the tech-boom of the 1990s, this TAMI-based boom is likely to be more sustainable, as technology is the wave of the future and will remain at the forefront of the office expansion in New York City. In 2000, there were only 500 million internet users globally, which did not allow for proper expansion in the technology industries. Today, there are 3 billion internet users, and this number has continually grown 15 percent annually over the past 15 years.